Phased unlocking to help recover two-thirds of lost jobs: CMIE
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As per the CMIE data, while the labour participation rate fell further to 39.7% as on June 6 compared to 40%, the employment rate dropped further to 34.6% compared to 35.3% in May.
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CMIE, however, is optimistic that this relentless loss of employment is expected to abate somewhat in the coming weeks as many parts of the country that were under a lockdown have started announcing cautious relaxations.
The phased unlocking across the country is expected to recover about two-thirds of the lost jobs or 17 million of the 25 million non-farm jobs lost since January even as the unemployment rate continued to inch higher and stood at 13% as of June 6, the Centre for Monitoring Indian Economy said.
As employment rate continues to worsen amid the second wave of Covid-19, the Centre for Monitoring Indian Economy (CMIE) has said that the Indian labour market is in its worst condition since April-May last year, when the whole country was .
FY20-21 is an outlier in India s financial system with the onset of pandemic. One direct corollary of pandemic in FY20-21 was a distinct slowdown in bank credit growth that has also continued into FY22.